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10/17/2011 10:30AM

Citi, Wells Fargo Report Earnings Rise

Citigroup and Wells Fargo each reported an earnings rise, but there is still uncertainty in the banking industry. Plus, Kinder Morgan deal for El Paso mints fourth largest merger this year, and fourth largest energy company in U.S. Photo: Reuters.

This transcript has been automatically generated and may not be 100% accurate.

... go ... stock markets looking all of all of them all hands on this Monday and compared to say last Monday and some of the week's recently ... again as usual confusion in Europe what's going on isn't going to be a deal isn't that going to be deal also in the earnings here in United States big banks reporting today ... is the MarketsHub mine Paul vignette I'm joined by George stall ... and there's more at the top of the Senate on top of the bank's total are pumping story today George ... one of them is not ... squeeze in a separate set aside by ... that they are coming back to a ... new dawn perhaps perhaps when I look we don't start off with a couple of the things today ... Citigroup Wells Fargo ... the numbers but whatever's look pretty good ... a andthe a look at it ... the Butner N Lao Sai one time thing is going on to ... detail reserve release is that starts the ... job ... well you know they have this outlet that had lower preserves when she now is that that that's really basically a one-time thing and it ... is is that they're putting money aside to cover bad loans and ... that was about one billion right yet and that they have but they have a lower time ... results from investment banking answer to dampen any gains they might have them overseas consumer banking and is not the other stuff like this and the threat ... and that is a DVA Akbar related adjustment is not happening ... forget value just isn't worth the ... read that the accounting manager degree it's a it's it's basically made up Monday it's that Accounting had Standard saying ... if you had to buy out now at the higher cost of that would have to borrow at because here ... the uncertainty of your businesses gotten out ... of the value of your credit Monday that the costs are higher so they can actually recorded a gain ... for the trade what they actually that their versus what they would be ready with our own analogies huge gains quadruple to one point nine billion dollars two billion ... dollars it's not it's not a small amount of money ... meanwhile the mortgage is seeking a fraud but the key theme and yet with the Morgan Stanley probably add later this week to the same thing I will be seen those type of sizable gains in future quarters ... I just depends if there's the uncertainty in the banking sector continues their borrowing costs again to continue to upset yes but you know with certainty ... false perversely they will have to report a loss on ... the decision is good and this is the only seats in the past couple of years they've gone through this with the iPad these adjustments in the losses ... so okay to accounting measures with great investment banking on so well read what the consumer has had to look for them as well as in it that they did well perceived swimming centers in Asia for example by now ... spending more money consuming ... more of the day I get there it's been pretty in the U S it spent ... sort of not so hot and actually think that that and even said the macroeconomic trends seem like they're ... preventing Taps a CEO who can't read ... yet again in EQT Credicorp is akin to something which is of the look of that separate but maybe as as as some of the pressures on the debit side of the business ... are acting out the credit card became Omega one tracked to ... read it maybe this will force them to look at other businesses that that they're selling and retain some events that did not follow Wells Fargo for second day ... for men actually ... concrete at Wells Fargo ... will they also have lower reserve switch that it is and you could significantly lower Research Center ... at the breakdown of their time in the stock is down to the ... beginning of the business wasn't as strong as it went up studying ... they had spent commercial loan I didn't go growth in a head and ... commercial real estate loan growth but that ... the mortgage business didn't perform the way analysts had expected to be ... good to be shown to their business right seed and Citigroup are JPMorgan which is globally diversified ... threat to the debt analyst or first mess on the bottom line in twenty years I think it is that the investment in this process we might be seen playing on the stock today than it did in the midst of a miner's shot down some Foster's units is our cousin cousin Tom works for Wells Fargo ... on a walk in the AWEA's audit were easily posted about how long the bill and throughout the full-time yet ... so it did actually made him one of the banks of actually held up pretty well right now he's tulou deterioration in his ... right and the FA very expensive she said to the mortgage business California ... real estate so ... any sort of lack of recovery in those markets can really impact and in this StockTwits was priced at a higher level than some other banks because they didn't have so much better so the fact that we do have some was putting it yet well with what he think this is about how does this reflect upon the common ... that the banks and their numbers well that offset capital markets wasn't very good idea and ... they all started and had had about the consumer ... the ... so that ... he really does very well for the in the near term economy Senate tended to think rather than facts you know ... yes that is overseas than here so in the US and as I read it you're right ... I could stop Liz Moyer to your image on is in ... the recent stock market and it's not the case well down one hundred points ... why Brendan Conway Dow Jones Newswires Eastern reporter here to tells all about it ... who is the stock market now up to the rally ... Friday afternoon everybody was all excited to positive territory to get the baby is priced above ... what a ... weapon over the weekend that everything's turned around ... so he hears his hat off ... a German official makes what what you probably think is a very ... you know ... no and controversial statement Friday this deal that were worthy ... of the knot knot is a highly not ... I mean the is ... is this to working on cancel everything basically was the message and you if you're watching markets that moment ... you are ... you know lost their gains the challenges turned negative ... on that COMMENTARY because it's a signal ... that Germany is is kind of sane people ... don't get your hopes up too much ... this is something that would have been struggling with ... so the dial back ... on one of the optimism ... about a hundred thirty now ... and this is despite the fact that we we still of very large deal over the weekend Yemen in Yemen market hasn't been of a possible began in the pipeline deal right into the debt ... among leader Morgan Obama says he'll ... be a good bet to anything tend to get people excited about the of that possible determination ... you don't get me some some of the folks that we talk to them and ask a mean and they're they're always looking for mergers ... to surprise the market for it ... this is just one of these periods reviewed and earnings even mergers ... take to take a backseat to the sovereign debt ... issues because people still are genuinely concerned ... yet yet they don't have a full grasp on it ... that ... the Potion here the governments in Europe ... don't have a full grasp of them are actually I have Rhind December on a few minutes to talk about the Kindle morning deals on top of that ... stay tuned for that ... you know again I find ranging brand in the ... livestock market commentary and was looking for the fundamental thing ... but again ... we saw the markets with just last week rise up to his resistance levels and falling apart again ... how much it is just technical ... and I think a lot of that is on the net effect on what people are trading in Conover ... hair trigger manner ... they're looking for that you know the headline spells ... AllClear ... or they're looking for the headline spells doom the aam ... most of which are actually see a simmering between its messy and he can ... get a read through from it and so that I think is is what's causing proceed ... IDC is playing out over the weekend that lots of money is coming a lot of big names this week Wilson had this will mean that this European summit coming up on the weekend the twenty third ... so what have you with the market is is I who choose to react on this over the course of this week ... yes I mean I mean ... certainly you know is that this be beating earnings to be next ... and that's having an impact on our house before hitting the market ... what I think they can Organon be in one of the strange holding periods ... where people are looking at every whisper out of Europe ... to try to get some idea ... of what was actually the real gang here is more than just every whisper I mean it every state that comes out of the European officials mouth ... as potential to move the market saw that today ... I find amazing that ... a couple weeks ago was the statement from Mark cozying ... from Merkel and ... it was that statement about a grant program program that got the market still jazzed up ... now you have them show that Gilenya axles of the setting us up for disappointment ... did negotiations not go as well as may be halted ... talk about that all the excitement and you can talk about that ... but I just find in ... the final disconcerting that the status of another knock on a stamp ... yet yet but I mean I mean that that's that's certainly ... what is happening because you look at every point in the market I mean ... we we had ... some some data points today ... usually a lot people are paying attention to the I ... saw him by state ... and enter a yes yes he was shown the fifth straight monthly decline in nothing drastic Amenas cut of more the same breath ... aam but I mean you know ... features Bierley minute lead when when when that was really just so that tells you what that was holdups all your hard earned income might think you're a month ... it's all year off ... earnings season gave that matters it doesn't matter much is Europe ... speaking of Europe well we come back next enrollment talk about your lot in goal receive ... retold amply all you what to expect ... shaking ... is of the eight week three-year up of very big week a lot of decisions need to be made the markets are expecting it ... the reality is demanding it really all right now to Charles Forelle was over in Europe with any get us up-to-date on the latest news ... trials are we really should we really expect something big and it's EU summit on the twenty third ... of ... the good morning well I know I mean that it did or didn't read that ... expectation of being dialed down rapidly de ... aam they started to get dialed down at nine ... forty five minutes after they were first dial up ... over the weekend Finance ministers meeting in Paris the ... finance ministers ... that the French find it interesting we expect that it has been one of the comprehensive plan ... for everybody on the twenty third of May ... we've been under an hour ... on the the ruling that started and that we learned very quickly that the plan for Greece is probably not can be read in all the key to open today ... I'm we're hearing more about the other elements of the planet may not be ready ... I Merkel's spokesman for said when I think a lot of people ... understood over the weekend which is that ... it isn't actually going to be completed on the twenty third ... that hasn't been rattled people ... aam but you know what the story of how lot of these things get was difficult for the country to find agreement with the start ... small and dainty and that the track the progress that they ... use their additional from them ... he started in the actual ... no ... other option was debate you can get these medium small beyond ... the Proms in the heat on ... the rollbacks an indication of the enormity of their the prices or does it indicate some disunity among the members are in your ... while most part the Aldinga wind up being predictable and with ... the remaining point that the new Greek bailout measures for bank recapitalization in their mission is to expand the fact that the bailout on ... the on the first part of the on the new Greek bailout ... they have not yet figured out how they're going to treat private creditors that something that investors are watching extremely costly ... France and Germany remain at odds of that exactly how private creditors to be treated and fuel costs and banks have a lot of money creation of a purple countries ... to that the concern ... was the only other throughout the book of the course know that even the on Greece ... there you give ... them the details that we need to countries and that takes time to work out ... it seems to me that we're seeing right now is ... so that ... all was that passes admission ... that the negotiations did not go as well as the lead us to believe ... does anyone ... else taking it that way ... I think probably you in permabull although you know they did they were quite far apart going into the weekend so ... um they did get a little but couldn't get closer together think it's fair to say to the ... upside the French and German the primary actors in this ... I'm gonna closer friend ... at one point earlier was suggesting that the bailout fund could be used if needed to help France to recapitalize the banks ... on the German state to be ... kidding me ... that was taken off the table so you know options have been removed from the table and got two sides closer together ... but again you know that the fundamental differences in back rent and how you ... but you know how you do the bank recapitalization who should be involved should pay for it ... on and it's going to be very hard to read that all up in the next you know ... that that which you see is the main thing is sticking point ... they have hope for more ideas for more on giving Greece remained probably the largest the key when the problem is that we need more money ... even then they expected in July when they last ... met with a grand plan ... Greece needs more money in this situation to worsen ... aam for technical reasons the cost of the collateral that it needs to purchase in order to to do the private sector outlook on top of increase ... more money when the government don't wanna provided ... to meet the need to go back to the private sector creditors and say look you've read them at the peak of the walk ... and obviously the banks and other holders of the debtors' thing and we don't wanna do that ... and to that of the game of chicken ... I in the bank had no real incentive to to make that happen ... super quickly ... so I it's going to be dragged off it's time to stop child from from the top the lot this week ... normally its fleet ... I think the talk is in ... person was it all mean what's gone on the euro ... we tell you right now trying to tell you ... we had was ... on the set and two million ... who is head of global strategy at Standard life right at me and I think I've been trying to get you on the shelf for a while you're in Scotland and introduce good thing when you get to know your new your absent and his simple basing financing rise to live a thousand I mean what you make the news today would make his grand bargain ... plan ... but I think it'll most of the building blocks ... and Delta team thanks Obel to see it thanks to an alternate system something that actually putting up ... of the ... foundation structure together ... an awful lot to be beginning to to to look for St ... we've had a clue about the detail about Greece ... what's going happen with the EFSF alleys that can be leveraged up what sort of ... cold to wanna make a sweet oak about five seven nine percent not one of the patients that means that ... I have to raise money to the base's manifolds ... was adopted the FeltThat mini ... cetera ... yes I think a big if politicians don't want to play ... in the course involves pumping thing is to get in the pockets of the means to have a very nice that he already ... knows a bit of a subtle than the Benj all the time you get out there ... up to ten fifteen percent musical was conceded that the pullback yes that politicians have ... become a fast necessary steps to meet some halt cement ... some aunties helping seen as the next few days otherwise is can it be settled next week as an investor then had your hair this morning are you putting money in taking money out what what do you doing as you're evaluating the situation is evolving and your will they succeed we set ourselves up and that at some Wiesel that you would supply the thought that the new economic team with no collapse ... said Rebien position like placed it in the state's heavy Gemin bones of Kala FloTV in a Celtic ... knot speed of light thing to do with the coupled with this caveat ... now we got a little bit of a relief rally coming out when light decent uptick of adjustments but ... as you said that he would just letting off ... second and third although politicians moments of them into the Sullivan could claim trading ... often when you go beyond and fifty billion dollars is we do said in a weekend Sunday team up to that ... that will build this you have to wait for that to the big statements that next week and then the site ... short of is this enough that the body to continue but all the facts are still together politicians adults impede open space in them having Tyson could pull into the new ... one of the impatience of a thing of the sting of a one for bank lending ... and credit creation of the next couple months to say ... that they did very well in certain supporting Greece but there was a big open space ... Commission question is if you're talking about the banks haven't gotten raise a lot of capital is your time of the banks taking while losses on Sano to ... find out is really going to restrict their ability to go out and upload it not just the right or wrong thing up ... but that is the one other realities is that that that ... the Internet is not just an issue for European banks that U K banks to give assurances operations as well and in so ... that it is just that the European banks the toolkit that ... I we we know the rules and the ordinary world and let the CVS night in a different and strange names like that and and it ... gets ... you to criticise his will still need a becomes imminent and say we all began to be seeing a Millstein which matched team of the bacon makes its closest to local politicians want to stick to ... what the public that he wants ... but that's going to be one of the two big Ichthys ... you central banks have to step in a lump sums as myself with the swell to twenty one seniors you're buying this point next week after into the summer and MTV's more confidence that your ... baby to bed in the building blocks and they seem thanks we know what we need to increase EFSF ... I think we need some bee numbers come in unless it's at least one trillion after the two trillion while we waited shop in gold ... to to calm the markets down ... all appetite for the the ... but I did ... a bit so to get local mall ... then they be decisive in the gym and pollen ... that is that Nelson of population to the end of the I think thirty per second this photo to go to the president has a shot of the prelim and leave it in Asheville ... North Carolina ... its first stop is getting impetus for his jobs bill citing the retools each year to date ... find out from the run-up in the tarmac delay ... as many toys to add a incidentally they happen to be important swing state in presidential action ... that has nothing to do with it ... the present was the key here a lot from him look we we need job growth in this country of Kenya really badly ... I'm and I want a comeback interest or what don't you mention shock and awe ... we had shock in all we had shopping on here with the Europeans try something people try to come up with these gigantic programs that's all that ... and it hasn't worked it's not going to solve its debt up to ... date this can be institution in the next seven to ten days always doing is putting some of the foundations in place full of manage the company and because the next five years you that needs to become more competitive likes ... it and this and this is the best of will ... and that means you the Kelcy folding all internal devaluation wage is coming down the other the couple compressed into a more productive when held up ... the second one might say about Medicare ... the euro zone ... leaders is not going anywhere made the cut is probably not can be done quite well in the so-called sometimes opted to an offbeat sense ... it's a pretty slim Ruth Jones and company ... the difficulty that ... politicians banks and that's one of the protests insanity boxes ... of the wills of amendment is ... decoupling the CPA will jokes and that means supply sight the full which is ... Ecomomic jaw can be useful ... we actually manage to make companies more productive and to some of the band taking these renovation ... responded to the team get more exports I'm surprised to hear some ... of the jets ... to India in a few days weeks or months to say Ahold's late Friday said it expects that it is can we leave it there ... thank you so come on the initial signs like the way in a bubble I terrible season ... OK listen well we come back to shore break you obviously will we come back to Kindler can deal with the deal to break it down for you ... the ... National ... it was the venue ... call it ... it is wonderful the back of my favorite parts of the country ... family heads remember is that we stand here ... and it's always nice to get our watch ... brains ... there ... I wonder what Yen does it all the people who are here ... throws the ball ... one of ... the ... spending side or the United States ... so the intended use the the the the ... daughter does get married this weekend ... so congratulations to do is gone ... we are so thrilled ... you're watching President Obama taking office to me Jon Stewart and national mood turn on a plane up to the crowd a little bit there never hurts to know ... when to the locals ... the CEO Alan goes for locomotion the vessel of any job in this country obviously ... let's move on let's talk about the deal today in the market is not a lot of press due to the euro the earnings are the ... bottoms of PDM in a deal in the energy patch Brian December is here to tells all about it ... morning ... morning I'm ... on gender Morgan and twenty one billion dollar deal final of some right ... right ... right to this'll create the ... largest pipeline operator in the country ... on the fourth largest energy company overall ... and it's the ... the fourth biggest deal here ... this is just are these just natural gas pipelines other some oil pipelines and all that well but it's mostly natural gas ... the ... movement ... and that that is that natural gas is going to be taken to double the dominant role in the U S energy ... infrastructure ... yes that's correct and also there so so much ... if at any price are so much gas coming out of U S shale formations have been out of the summonses to talk about the weekend or no ... yet no fee that you know El Paso will give sugar Morgan access to what the southeast Markets to the floor to the south west where ... natural gas is increasingly used to ... generate ... power for things with airconditioning system we expect more consolidation in this area who might be some potential buyers and sellers ... um well there's Ardi been some consolidation ... energy Transfer and Southern Union on the effect I have going on in the pipeline business ... um ... you know some other companies that there's there's consolidation then there's also um um come is breaking apart ... um El Paso was going to break apart its pipeline from its ... exploration production business in May The announced that ... and after Morgan will still shed that exploration business yet ... why now for now ... what isn't about my guess is she I'm you know the answer ... what is it that it is she is making this a much more attractive to energy assets ... well they're just so much of it aam at some point ... you know everyone's batting a half to play a bigger role in our energy picture ... um there says there's so much of it ... AM is frankly there's not a lot of places for to go there's a lack of pipelines of the need to go more pipelines into Morgan CEO said yesterday that ... the combined company will allow them to ... grow faster build these pipelines from these ... new found energy fields in places like North Dakota and Ohio ... to the markets for the gas ... is needed ... they're paying the premium for this company right up there they are so ... Channel four in ... the new began on natural gas ... should he will be making a bet on natural gas we think that this is really going to be something it's can grow yes I mean the thing is is ... you know regardless of the price ... of low priced white prop driller's to drill fewer wells in my church service companies to help fill of wealth ... but ultimately the gas is coming on the ground a lot a wealth of control ... and somebody Scott a move that somebody Scott a store it at any price what what is the person who has been to only um it's it's been below four dollars um so it's it's historically preachy and that's really all in ... one scene were together kind of like the psychological line on and the really no one really forecasted to get much above five dollars and times of the ... night could suffer I think you might see you ... on hanging over them are present Obama speech right now ... beyond ... that ... in on the president ... then the Grand Central Station ... there's no reason why we should sit here and watch the best highways ... and less airports ... being built in China ... please into the bottom right and the United States ... in America ... now ... our problems were long-time mate ... it's all them overnight ... but there are things we can do right now to put people back to work right now ... the things we should do right now ... to get the economy the joke that and it's ... Seoul the slot and send to Congress ... the American Jobs Act ... the ... but the real reason is ... the bill containing the cause of the proposals ... it's ... receive support from Democrats and Republicans ... it's completely table ... by asking the wealthiest cities ... folks making more than a million dollars this year ... to pay their fair share ... the the ... the ... economists ... might come as but it ... didn't come ... that said this jobs bill ... would create nearly two million jobs ... it's not my opinion ... the president also worked for me ... the opinion of people who evaluate these kinds of things for a living ... it says this bill will help ... put people back to work and give our our economy a boost ... write what ... but apparently none of those matters to the Republicans on the site ... the ... last one big altogether ... the block has been ... that said no to putting teachers and construction workers back on the job ... instead Noda rebuilding our roads and bridges are airports ... no ... to cutting taxes for middle-class families and small businesses ... when all they did not its content is what is the matter ... in the holding ... the Orenstein Johns ... essentially this note ... it turns out one poll found sixty three percent of Americans ... support the ideas in this jobs bill ... the sixty three percent of Americans support ... the jobs bill but put forward ... present were probably ... Sunday we will be the president's speech downmarket ally and pushing his jobs bill we hope something good happened on the job through with it the bill or not ... lessen our apologies to Jeannette Neumann would have brought to a good story look at online ... the challenges to the ratings agencies ... comeback at two pm today to the mean streets but the thing about the Enron ten years later ... thanks for watching folks